What is Identity Theft?

Identity theft can be the single most devastating crime that an individual will be victim of in his or her lifetime. Every year, millions of Americans fall prey to ID thieves, and many of them, don't even realize it.


This guide:

  • Explains what identity theft is

  • Shows you how you can protect yourself

  • Outlines the steps to take if you have been a victim of ID theft

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How identity theft works

Identity theft occurs when one person impersonates another by stealing their personal information. Most often this information is used to open a credit card account or take out a loan.

Being aware of the methods criminals use to steal your information, and what they do with the information once they have it, could potentially help you recognize identity theft, and help mitigate its devastating results.

Criminals access your information by:

• stealing wallets & purses containing IDs, credit & ATM cards,
• completing a "change of address form" to divert mail,
• rummaging through trash for personal data,
• obtaining your credit report by posing as a landlord or employer,
• using personal information you share on the Internet, and
• stealing mail, including bank & credit card statements, pre-approved credit offers, or tax information.

Criminals use your personal information by:

• making charges on your credit card account,
• opening a new credit card account,
• establishing a phone or wireless service in your name,
• opening a bank account in your name,
• buying cars by taking out an auto loan in your name, and
• counterfeiting checks or debit cards and using them to make withdrawals from your bank account.

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Identity theft prevention is your responsibility

It would be great if there was a national police force tasked with preventing ID theft. Unfortunately, beside the Federal Trade Commission, which takes your report after you've been a victim of ID theft, there is no single entity whose job is to protect your credit.

For this reason, identity theft prevention is best accomplished by you! Managing your personal information responsibly, keeping your belongings safe, and making your mail secure is crucial. On the next page, we'll take a detailed look at the various steps you can take to protect your good name.


Next: Identity theft prevention: what YOU can do to protect yourself NOW